Housebuilder Springfield Properties has announced that it has completed the acquisition of the entire issued share capital of Walker Holdings for a net consideration of up to £31m
The net consideration of the acquisition is to be funded from Springfield’s existing cash balances and borrowing facilities with Bank of Scotland.
Walker Group is a family housebuilder primarily targeting the two to the five-bedroom private home market in desirable locations within the Edinburgh commuter belt.
Walker’s developments generally comprise between 50 and 200 homes and the company also has the capability to deliver cost-effective larger, multi-phased schemes.
The acquisition is in line with Springfield’s stated strategy of expanding its land bank and sales presence.
Walker does not currently build affordable housing whereas development of its current land bank will require at least 346 affordable homes to be built, which represents an opportunity for Springfield’s Affordable Housing division.
The Group will retain Walker’s premises in Livingston, all of the company’s 50 staff and the well- known Walker brand. Peter Matthews, Springfield’s Managing Director for Central Scotland (Private Housing), will take over the responsibility of running the Walker business.
Sandy Adam, Executive Chairman of Springfield, said: “We are very pleased to have completed this acquisition and welcome Walker Group’s employees and customers to Springfield. Walker Group has a reputation for building excellent homes in great locations. The ethos among employees and the quality and location of the land bank are a great fit for Springfield.
“The acquisition has enabled us to diversify our land bank with sites at various stages of planning and development in East Central Scotland, where we have been looking to strengthen our foothold.
“We are pleased to have efficiently delivered a large proportion of our land-buying plans for the wider Edinburgh area, adding 10 sites to our land bank in one deal rather than with multiple individual deals. Walker’s active sites bring an immediate sales presence in new locations and the sites in the pipeline further strengthen our land bank and enhance our quality of earnings.”
Innes Smith, CEO of Springfield, added: “The positive experience we have had with the acquisition and integration of Dawn Homes last year makes us confident that an established company with great people, product and reputation like Walker will be a further positive addition to our group. This bulk addition to our land bank also gives us very good visibility in our three-year projections.
“Last year we strengthened our management structure with investment in four high calibre MDs responsible for distinct geographic areas. Peter Matthews, MD of Springfield Central Scotland, will take charge at Walker, adding to the Springfield developments for which he is already responsible. We look forward to working with the Walker team and continuing to grow our business.”
